Fortive Corporation

My name is Shamali, and I will be your conference facilitator this afternoon. At this time, I would like to welcome everyone to Ford of Corporation's first quarter 2026 earnings results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press star, then the number two. I would now like to turn the call over to Ms. Christina Jones, Vice President of Investor Relations. Ms. Jones, you may begin your conference.

Thank you, and thank you, everyone, for joining us on today's call. I am joined today by Elumide Chiroye, Fordiv's President and CEO, and Mark Okerstrom, Fordiv's CFO. During today's call, we present certain non-GAAP financial measures. Information required by Regulation G is available on the Investors section of our website, We will also make forward-looking statements, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks, and actual results might differ materially from any forward-looking statement that we make today. Information regarding these risk factors is available in our SEC filings, including our annual report on Form 10-K and the subsequent quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update any forward-looking statements. Our statements on period-to-period increases or decreases refer to year-over-year comparisons, unless otherwise specified, and our results and outlook discussed today are on a continuing operations basis. With that, I'll turn the call over to Illuminae.

Thank you, Christina. Let me begin on slide three. Q1 marked a strong start to the year with another quarter of solid performance. We remain laser focused on delivering on our strategic and financial plans for 2026 and continue to make encouraging progress on executing our 40th Accelerator Strategy. We have four key messages to cover today. First, our teams executed well in the first quarter of 2026. delivering solid performance in both segments. On a consolidated basis, we delivered core revenue growth of just over 5%. I just had EBITDA growth of 13%, and I just had EPS growth of over 25%. Please note that our core revenue growth in the quarter was aided by approximately 150 business points of tailwind from additional year-over-year selling days in the quarter. Second, we continue our disciplined capital allocation approach with a relentless focus on optimizing shareholder returns over the medium to long term. In the first quarter, we completed approximately $500 million of share repurchases. We've now reduced our share count by just over 10% since we launched Need40 in July 2025. Third, With three-quarters of execution now behind us, our confidence continues to build in the power of the 40-accelerator strategy to unlock benchmark beaten returns for our shareholders over the medium to long term. I'll spend a few minutes on this in the next slide. Lastly, we are reaffirming our four-year adjusted EPS guidance range of $2.90 to $3. Based on our Q1 performance and trends to date, we believe results are trending toward the upper half of that range. Moving to slide four. Before we get into our Q1 results, I want to highlight some of the progress we're making in executing the three pillars of our 40th Accelerated Strategy. Starting with the first pillar, delivering faster, profitable organic growth, powered by our 40th Business System Amplified. This quarter, we continue to increase our innovation velocity with several notable hardware product milestones and AI-enhanced product launches. As discussed last quarter, Fluke launched a new data center testing solution, CertiFiberMax, with the fastest report in the industry in late Q4. Customer response continues to significantly exceed our expectations, underscoring the strength of Fluke's brand and the effectiveness of our broader data center strategy. We are particularly encouraged by Certified by Max's ability to drive meaningful pull-through of other fluke products into data center applications, including power quality, battery testing, imaging, and calibration solutions essential for both build-out and ongoing operations and maintenance of data centers. In healthcare, we introduced Probation Mirror Documentation Assist, a real-time AI-powered voice-driven documentation capability enabled by deep domain expertise and proprietary data and embedded directly into GI procedural workflows. This solution enables clinicians to capture structured documentation during the procedure, reducing the need to reconstruct details afterwards and enabling the clinical team to focus on the best patient care. On the commercial side, we continue to focus on faster-growing end markets and regions where we've made deliberate targeted investments to capture growth. At Fluke, we continue to invest in commercial expertise across high-growth verticals such as data centers, defense, and distributed energy. And we're seeing solid early traction from our focus efforts. And at ASP, we continue to advance our made-in-region strategies in India and China, supported by related commercial investments, and we're beginning to see positive impact of this effort in our results. We're also advancing ASP's growth strategies in EMEA with the European commercial launch of Sterad Ultra GI. On our recurring customer value initiatives, we continue to make progress on driving deeper customer lifecycle engagement and improving revenue durability. In Q1, recurring revenue again grew faster than consolidated revenue in both segments. Our recurring customer value progress continued in our iconic hardware brands. Fluke continues to make progress on increasing recurring revenue with double-digit services growth in the quarter. And industrial scientific continue to see strong growth and share gains in our hardware as a service product line. Moving to the second pillar, disciplined capital allocation. is an integral component of our 40th Accelerator Strategy. Consistent with our priorities, we deployed another roughly $500 million to share repurchases in Q1. Since the spinoff, we've deployed approximately $1.8 billion to share repurchases, representing 35 million shares, or just over 10% of diluted shares outstanding. Our revamped Bolton M&A engine and team is in place. and we will continue to evaluate opportunities for high-quality accretive Bolton acquisitions that meet our rigorous strategic and financial criteria. Looking forward, our capital allocation priorities remain clear. Invest in organic growth pursue bolts on M&A where risk-adjusted returns exceed other uses of capital, return capital through share repurchases, and maintain a modest growing dividend, all with a focus on best relative returns and maximizing medium to long-term shareholder value. Moving to our final pillar, building and maintaining investor trust. we were pleased to deliver solid performance ahead of expectations for a third consecutive quarter as New 40. That is a good start, and we look forward to building on our momentum. We remain laser focused on executing against our 2026 financial and strategic plan and continue to have strong confidence in our 2026-2027 financial framework that we shared at our June 2025 Investor Day. With that, I'll turn it over to Mark to walk through our financial results for the first quarter in more detail.